KYC – Solution to Fraudulent

KYC – Solution to Fraudulent

The evolution of mobile apps that are meant to assist us in our daily lives could be threatening if there are no precautionary steps taken to protect our financial security. In 2018, there are 444,602 identity theft cases in the United States alone. 157,688 of it are credit card fraud cases. It is reported that the numbers will be tripled in the next 5 years making this a serious issue that needs to be acknowledged. 

How do we ensure that our financials are safe and secure?

Implementing KYC would prevent such mishaps from sky-rocketing as predicted by scholars. This is because KYC serves as a method for banks, business owners, service providers and etc. to protect the customers’ financial data. 

What is KYC?

If you are vigilant, you must have heard of the term “KYC”. Have you ever use a mobile application where it requires you to prove your identity by taking a picture of your ID? Most commonly, KYC is used as a requirement by banks and fintech companies or service providers that tends to your financial needs such as cashless transactions using e-wallets or even online banking. 

KYC; Know-Your-Customer or Know-Your-Client is a protocol that goes hand-in-hand with AML; Anti-Money Laundering Law to prevent identity theft, money laundering, terrorism financing, and other illegal corruption schemes from using the service, (such as minors, undocumented immigrants, and people with criminal records) by identifying and verifying the identity of the customer. 

For example, if you are applying to be an Everus Wallet user (an e-wallet that stores, manages, secure cryptocurrency assets and more), KYC is a requirement for withdrawal of assets as it ensures that you are really you and not someone impersonating as you. 

Imagine KYC is like an ice-breaking session during your first day at work. The employees will get to know your name and establish that you are a new member of the organization. The organization will then acknowledge the jobs you completed, making sure that it was completed by you. 

Similar to the KYC compliance as the responsible party will monitor your transactions and withdrawals ensuring that it is safe and secure, lowering the risks of fraudulent by making sure that all transactions are only done by you. 

The process of KYC Verification

Any required information that verifies your identity is a form of KYC verification. However, commonly, KYC Verification requires you to present your National Identification Card, Driving License or Passport Card together with a picture of you holding the said card. The responsible party will then process the documents to assure the legitimacy of it. After the verification is completed, you are now able to use the application worry-free from the risks of fraudulent.


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